James Turk, founder and chairman of GoldMoney.com, told RI there was some serious money waiting in the wings, “namely, everybody who missed the last $50 of this move by waiting on the sidelines instead of buying under $620.”
A lot of traders lost the opportunity to cover their shorts when gold began to rise, and they were forced to begin covering, said Turk.
“They haven't covered everything though, so gold should rocket over the next few days,” he said. “I've had a $715 target for month-end, and given the amount of shorts in the market that need covering, I expect that we will get there.”
In a market alert today, Peter Grandich, editor of the Grandich Letter, said he’s more bullish now than ever.
“I’m very impressed with its trading patterns, especially accounting for the occasional bear raids that are repelled within hours or days,” said Grandich. “The fact that the raids marked the lows, not the beginning of a more sustained downside move, is just one of the bullish factors.”